Question

Production possibility curve is: *
a) Downward-sloping
b) Concave shaped
c) Both a and b
d) Either A or b​

Answer 1

Answer:

production possibility curve is

a) downward-sloping

b)concave shaped

c)both a and b

d)either A or B

Explanation:

option a) downward-sloping

Answer 2

Answer:

Answer

Correct option is

C

concave to the point of origin

The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that a firm makes when they shift resources and technology from production of one commodity to the other. Since resources are use specific, therefore every time when one more unit of a commodity is produced more units of the other commodity is sacrificed that results in increasing marginal opportunity cost which leads to the concave shape of PPC to the origin.